December 2005
Sun Mon Tue Wed Thu Fri Sat
        1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
TRADING PLAN

2005 PORTFOLIOPls. wait for page to load!
Stricknet: End of Day Data
Stock, Option Quotes - Zipped
Daily data for only $19.95 mo.
http://www.stricknet.com

« SFOMag July '05 Issue: Options & Trading Psychology | Main | Pacific Exchange To Trade Options In Pennies »

June 28, 2005

CotC, Taylortree, Option Strategies for Buyout Candidates

The weekly Carnival of the Capitalists (CotC) is up at Business Blogcasting. Posts that cover trading/investing include: Why Politics Matter to Investors, Bullish Trends in Commodities, and the Islamic Gold Dinar.

Mike at Taylortree writes about his experiments with different position sizing strategies; a must-read for anyone developing a detailed trading plan!

And finally, there's a Smartmoney/Barrons article on how option strategies can be used to profit from buyout candidates. Excerpts:

  • Most speculators will buy calls on potential targets. But another alternative is the "risk reversal," where one sells at-the-money puts to buy slightly out-of-the-money calls. This allows traders to "simultaneously participate in the stock's rise and to capture the volatility premium generated from a flattening skew."

  • Covered call-writers scouring for announced deals with "some juice left" tend towards stocks trading at a discount to the offer and whose options look pricey.

    • Posted by galatime at June 28, 2005 01:17 PM

    Comments